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Fed's 'Operation Twist' Tangles Treasury Trade

By

Min Zeng

February 10, 2012

"Operation Twist" has got the Treasury market in a knot.

One of the goals of Operation Twist, which was implemented in October, was to push investors out of Treasurys and into riskier assets such as stocks. Under the policy, the Federal Reserve, led by Chairman Ben Bernanke, is buying Treasury bonds that expire within six to 30 years, funding those purchases by selling notes and bonds with shorter maturities.